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Treasury directs Zimra to align capital gains tax collection
2 hrs ago |
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The Ministry of Finance, Economic Development and Investment Promotion has directed the Zimbabwe Revenue Authority (ZIMRA) to align its collection of Capital Gains Tax with the Government's existing policy intentions following legislative drafting errors that created uncertainty over applicable tax rates.
ZIMRA said it had identified inconsistencies in the current legislative framework, resulting in uncertainty over the rates applicable to certain transactions and the tax liabilities of different entities.
In a letter to ZIMRA Commissioner General Regina Chinamasa dated August 4, 2026, Treasury said technical errors in the Capital Gains Tax Act and the Finance Act had contributed to confusion in the market.
"These inconsistencies arise from drafting anomalies rather than the underlying policy intent," Treasury said.
The ministry confirmed that the applicable tax treatment remains linked to the date on which an asset was acquired, pending formal amendments to the legislation.
Under the directive, immovable property and unlisted shares acquired before February 2019 will attract a final Capital Gains Tax of 5 percent of the gross sales value.
For real estate and unlisted shares acquired after February 2019, the applicable rate will be 20 percent of the net capital gain.
The directive is expected to provide greater certainty for property sellers, financial advisers and parties involved in corporate transactions while the Attorney General's Office works on amendments to correct the legislative inconsistencies.
The clarification is intended to ensure that ZIMRA's tax collection remains consistent with the policy position pending formal changes to the law.
ZIMRA said it had identified inconsistencies in the current legislative framework, resulting in uncertainty over the rates applicable to certain transactions and the tax liabilities of different entities.
In a letter to ZIMRA Commissioner General Regina Chinamasa dated August 4, 2026, Treasury said technical errors in the Capital Gains Tax Act and the Finance Act had contributed to confusion in the market.
"These inconsistencies arise from drafting anomalies rather than the underlying policy intent," Treasury said.
The ministry confirmed that the applicable tax treatment remains linked to the date on which an asset was acquired, pending formal amendments to the legislation.
Under the directive, immovable property and unlisted shares acquired before February 2019 will attract a final Capital Gains Tax of 5 percent of the gross sales value.
For real estate and unlisted shares acquired after February 2019, the applicable rate will be 20 percent of the net capital gain.
The directive is expected to provide greater certainty for property sellers, financial advisers and parties involved in corporate transactions while the Attorney General's Office works on amendments to correct the legislative inconsistencies.
The clarification is intended to ensure that ZIMRA's tax collection remains consistent with the policy position pending formal changes to the law.
Source - The Herald
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